Major retailer pulls wine from shelves as tax raid takes its toll

A major retailer has pulled some from its shelves after a shake-up of rates. Majestic has axed fewer than a dozen wines from a number of smaller vineyards after new rules came into force in February.

Chief Executive John Colley said retailers would usually offer some of those wines for sale because consumers love them. He added that it has become a more commercial decision since the alcohol duty changes were introduced. Under the old rules, the tax rate due on wines between 11.5% and 14.5% ABV (alcohol by volume) was the same, but the new regime sees the tax calculated according to various strengths.

The changes have made some wines more expensive and imposed even more red tape on retailers.

Mr Colley told the : "If you've got something that just doesn't make sense because the volumes are so small and the cost of administration [has risen], there's an impact. You just can't make any money from doing it.

"We've spent hundreds of hundreds of thousands of pounds on systems just to manage it, it's that complex."

He warned last year that some customers' favourite wines could increase in price or "at worst" disappear from shelves entirely.

Majestic's Chief Exec said the changes won't be noticeable for most shoppers, aside from those who are looking for wines that are no longer on sale.

He said Majestic staff will be able to offer alternatives to the missing wines. The retailer has a range totalling more than 1,200 wines.

The Express understands the wines affected have higher ABV values, thus attracting a higher duty level, and there are fewer than a dozen wines affected by the changes, less than 1% of Majestic's total range.

The company itself was founded in 1980 and now has 213 shops across the country. Majestic last week agreed a deal to buy drinks wholesaler Enotria & Coe afer acquiring bar group Vagabond Wines in 2024.

Mr Colley said Majestic will keep opening stores, but tax increases, such as the rise in employers' National Insurance contributions, mean the business has to be pickier about the kind of shops it opens.

He said the company has had to cut its cloth accordingly within its retail business model, with the changes affecting workers.

A Government spokesperson said: "The alcohol duty reforms have modernised and simplified the duty system, prioritising public health and incentivising consumption of lower strength products.

"We continue to work closely with the wine sector to drive growth, support high-quality jobs and identify opportunities to export the UK's fantastic wines across the world."